• Warns against impending world economic pressures

The executive director of the International Monetary Fund (IMF), Barry Sterland, representing the constituency in which Seychelles is a member, has hailed the country’s strong reform performance and resilience which he said needs to be maintained.

But he also warned the country of some downside risks that are becoming apparent in the international economy.

Mr Sterland was talking to the press after his courtesy call on President James Michel at State House yesterday.

Also present were Jean-Paul Adam, the Minister for Finance, Trade and the Blue Economy; Caroline Abel, the Governor of the Central Bank of Seychelles (CBS); and Ronald Cafrine, adviser to Mr Sterland.

A communiqué from State House said President Michel thanked the IMF for its continued support in the Seychelles economic reform programme. He said the partnership is a fruitful and exemplary one, which shows the IMF’s confidence in Seychelles and its ability and determination to pursue reforms for sustained and inclusive growth.

“The way forward continues to be challenging, but we remain optimistic that our strong fiscal and monetary policies, legal frameworks and bold decisions that we continue to take, will ensure that we continue to make further sustainable economic progress for the benefit of the Seychellois people,” said President Michel.

In his interview with the press, Mr Sterland said he stressed on the darkening clouds on the international economy that are needed to be taken into account by all countries.

“The Seychelles’ performance in the past has been well noted in the IMF, with very strong reform performance and I think that resilience needs to be maintained to guard against some of the downside risks that are becoming apparent in the international economy,” Mr Sterland said.

Mr Sterland said it is his first time here in Seychelles. As he has to get round and meet his constituent countries whenever he can, this was a perfect opportunity for him to meet Minister Adam, whom he first met in Washington. And also to meet the CBS governor and the president.

He also added there was also a constituency relation and courtesy element in his visit.

On the progressive tax reform the Seychelles is working on, Mr Sterland said the IMF is there to give broad advice.

Minister Adam explained that, as a member on the IMF board, Mr Sterland briefed the government on the new developments in the world economy while keeping in mind the IMF perspective as the organisation which has a certain responsibility to assure economic stability globally and support member countries to make sure they do not receive the shocks caused by developments in the world economy.

“Obviously the whole focus of our reforms has been to boost Seychelles’ resilience against external pressures and will continue to do so in the context of these challenges that are emerging in the world economy.

“We have taken some measures particularly aimed at boosting social protection as announced in the President’s State of the Nation address. This also requires obviously a fiscal readjustment. Apart from that we will also be keeping in mind the necessity of having a very strong fiscal surplus … again in the context of ensuring our resilience vis-à-vis the storm clouds appearing on the horizon in terms of the economy,” said the minister.

 “We are confident that with the support of our partners and of course the IMF as well as our determination in terms of the ongoing reforms, we would deliver a good fiscal performance coupled with appropriate monetary measures,” said Minister Adam.

Mr Sterland represents the Asia-Pacific constituency of countries at the IMF. Besides Seychelles the other countries forming part of the constituency are Australia, Kiribati, Korea, Marshall Islands, Micronesia, Mongolia, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Uzbekistan, Tuvalu and Vanuatu.

Forrás: www.nation.sc